More than 85% of South Africans do not have a will, and five out of six estates registered at the Master of the High Court in Pretoria are not executable because they are not legally compliant.
According to the FSCA (Financial Sector Conduct Authority), 5 million single mothers are not leaving guardianship instructions for their children, and more than 60% of children born in South Africa does not have a father on their birth certificate.
Lastly, 8.7 million homeowners and 5.4 million car owners not ensuring that their assets are distributed according to their wishes.
Stian de Witt, CFP®, executive head of Financial Planning at advisory firm NMG Benefits, explains that if someone dies intestate (without a valid will) their estate is wound up by the State, and this can be a slow and complicated process, with outcomes that may not reflect the deceased’s wishes – especially when they are survived by minor children: “Children may not be financially protected, or someone you did not choose may end up being responsible for their care.”
5 essentials every single parent should know
- Drawing up a will is simple: Essentially, you must be of sound mind, over the age of 16, and sign your will in the presence of two witnesses who are not beneficiaries. NMG Benefits provides an easy, free, online platform where you can write a will, update it any time, and safely save it for when it is needed.
- Update your will regularly: Life changes quickly, and an outdated document can lead to conflict. If you marry, have another child, or an intended beneficiary passes away, you should update your will.
- Choose your executor carefully: Your executor ensures your debts are paid and assets distributed. It is vital to nominate someone you trust, and who can navigate the legal and financial process. If you do not name an executor, the Master of the High Court will appoint one, and this person might not carry out your wishes.
- Form a trust for minor children: If your children are under 18 and you die without a will, the assets you leave for them will likely be managed by the state’s Guardian’s Fund, and the outcome may not be as beneficial as you would have wished. However, setting up a testamentary trust in your will allows a trustee whom you nominate to manage the inheritance in line with your wishes until your children reach an age you determine. “We always advise our clients to work with our legal professionals to ensure this aspect is watertight,” says de Witt.
- Communicate your wishes
A will only works if your loved ones know it exists and where to find it. Talk to your family about your intentions and store the document in a safe, accessible place. “A will is there to make life easier for the loved ones left behind”, de Witt says.
A will is a legal document setting out how assets, debts, and guardianship of minor children should be handled after death. It forms part of your overall estate planning, but proper planning takes a broader view by structuring assets like pension funds, life insurance policies, and investments in the most efficient way to protect and transfer wealth to beneficiaries. Some kinds of investments and policies have their own beneficiary nominations, which are guided by the law, and which override your will. If you do not update these documents after major life changes, these benefits may end up being paid out to the wrong individuals.
“While anyone can draft a will, professional guidance helps avoid costly mistakes and, for single parents, the stakes are especially high,” says de Witt. “Your will is a safeguard for your children’s future and a way of protecting the legacy you are working so hard to build. Working with a Certified Financial Planner® will help ensure your wishes are carried out after you pass away.”
